Sublime

rabbit. So you can think of the economy as a series of shocks moving to an equilibrium, shock, moving to an equilibrium.

If money is printed too aggressively and it is not used productively, people will stop using it as a storehold of wealth and shift their wealth into other things.

3 to 5 is more than 20.

separation between the real and financial economies results in protracted capital misallocation, as flows of funds and created credit are focused into purchasing existing assets in the pursuit of stable savings returns from known predictable cashflows and anticipated capital gains in asset values.

The ECB were justified in panicking about the threat of deflation. An environment that is simultaneously debt laden and has falling prices will quick devolve into a crisis, as revenues and wages will struggle to cover interest payments on previously accumulated debt. Interest payments definitely do not fall in sympathy with prices therefore deflati

The ratings agencies were paid by the issuer of the CDO every time they rated one: the more CDOs, the more profit. A virtually unlimited number of CDOs could be created by combining different types of mortgages—or when that got boring, combining different types of CDOs into derivatives of one another. Rarely did the ratings agencies turn down the o

To understand how the current system might spin out of control and where the unraveling might begin, look at where the complexity – aka systemic risk – is of late being concentrated most quickly. Post-2008, the two areas that stand out are government debt – which has been substituted for private debt as governments have borrowed unprecedented amoun

GREED RUN AMOK has been an essential feature of every spectacular boom in history.